How to Create a Rental Bond for Tenants
There are significant benefits to being a landlord. Along with generating additional income, renting out property establishes an inhabited presence to deter theft and vandalism. There can be drawbacks, though. Some tenants do not respect the property and they may damage that property through malice or negligence. A landlord can ask a tenant for a rental bond that protects the landlord's financial interest in the property up to a certain level.
Other People Are Reading
Instructions
-
-
1
Perform a thorough assessment of the property to be rented. Walk the tenant through the property and note in writing the condition of all equipment, appliances, carpet, flooring and paint prior to the tenant's occupancy.
-
2
Sign and date the assessment and have the tenant sign and date it as well.
-
-
3
Request the rental bond deposit from the tenant. This figure can be up to one month's rent for properties with a rent less than $700 monthly. For properties exceeding $700 monthly, you can ask for any amount of bond to protect against damage, theft or skipped rent.
-
4
Sign and date the rental agreement and have the tenant do the same.
-
5
Fill out bond lodgement form 2 and include all of the details of the rental agreement, including the location of the property, the duration of the tenancy, the personal information of the tenant, your own personal information, and then have the tenant sign and date the form.
-
6
Sign and date the form yourself, then submit the form, along with the bond funds, to the Residential Tenancies Authority within 10 days.
-
1
Tips & Warnings
Failure to submit the lodgement form along with the bond to the RTA within 10 days will result in the assessment of a penalty. It is the landlord's responsibility to file the form and the bond with RTA within the time allotted.
